Participative Management – Workers Participation in Management

Human Resource Management

Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

How to Meet Costa Rica’s 2026 VASP Requirements Without Expanding Headcount

General Business Articles

Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Reverse Merger – Meaning and Example

Normally, a small company merges with large company or a sick company with healthy company. However in some cases, reverse merger is done. When a healthy company merges with a sick or a small company is called reverse merger. This may be for various reasons. Some reasons for reverse merger are: The transferee company is a sick company and has carry forward losses and transferor Company is profit making company. If transferor Company merges with the sick transferee company, it gets advantage of setting off carry forward losses without any conditions. If sick company merges with healthy company, many restrictions are applicable for allowing set off. The transferee company may be listed company. In such case, if transferor Company merges with the listed company, it gets advantages of listed company, without following strict norms of listing of stock exchanges. In such cases, it is provided that on date of merger, Continue reading

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International Commodity Exchanges

Recent years have witnessed a steep rise in the creation of the commodity exchanges along with a consistent expansion of the existing ones. The United States, Japan, United Kingdom, Brazil, Australia, Singapore are homes to leading commodity futures exchanges in the world. Worlds Major Commodity Exchanges 1. The New York Mercantile Exchange (NYMEX) The New York Mercantile Exchange is the world’s biggest exchange for trading in physical commodity futures. It is the primary trading forum for energy products and precious metals. The     Exchange has been in existence for 132 years and performs trades through two divisions, the NYMEX divisions, which deals in energy and platinum and the COMEX division which trades in all the other metals. A major contribution of the Exchange has been to develop and launch energy futures and options contract in 1978 to facilitate price transparency and risk management in this key market. Exchange has Continue reading

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What is Departmentalization?

Departmentalization is the grouping of activities and responsibilities by  sub-units  of the organization. These  sub-units  are called departments. The division of labor or degree of departmentalization is driven by the need for specialization whether by process or purpose within an organization. The most common way of process departmentalization is the division of the firm into business functions, such as purchasing, manufacturing, sales, accounting, etc. Departmentalization specifies how employees and their activities are grouped together. It is a fundamental strategy for coordinating organizational activities, because it influences organizational behavior in the following ways: Departmentalization establishes the chain of command – the system of common supervision among positions and units within the organization. It frames the membership of formal work teams and typically determines which positions and units must share resources. Thus, departmentalization establishes interdependencies among employees and subunits. Departmentalization focuses people around common mental models or ways of thinking, such as Continue reading

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The Role of the Management Accountant in Organizations

A management accountant’s duty is to provide information to users who are part of the organization from various levels. However, different levels of management has different information needs. Thus, a management accountant has to tailor the information for them. The first step that should be taken before the management accountant provides any type of information is that he should be clear and understand the company vision as the top, middle and bottom management of an organization. The top-level management is responsible for the long term strategic plan with strategic decisions for about 5 to 10 years time. Therefore the top management will create a mission, which will consist of a more specific goal that unifies company’s efforts. So, the management accountant should prepare budgets for top management accountant to decide which projects have to undertaken to achieve the company’s goals. Budget is a strategic plan that details the action that Continue reading

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Accounting Rate of Return (ARR) Method of Capital Budgeting

Accounting Rate of Return (ARR) Method Various proposals are ranked in order to rate of earnings on the investment in the projects concerned. The project which shows highest rate of return is selected and others are ruled out. The Accounting Rate of Return is found out by dividing the average income after taxed by the average investment, i.e., average net value after depreciation. The accounting rate of return, thus, is an average rate and can be determined by the following equation. Accounting Rate of Return (ARR) = Average income / Average investment There are two variants of the accounting rate of return; Original Investment Method, and Average Investment Method. 1. Original Investment Method. Under this method average annual earnings or profits over the life of the project are divided by the total outlay of capital project, i.e., the original investment. Thus ARR under this method is the ratio between average Continue reading

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About United Nations Global Compact (UNGC) – 10 Principles of UNGC

The United Nations Global Compact (UNGC) is a tactical strategy scheme for companies who commit to align their operational strategies to the principles outlined by the UNGC whose main purpose for existence is to assist businesses in managing risks and opportunities presented to them in certain areas such as the environment, society and authorities like government divisions and laws. This initiative also aims to integrate their ten principles as universal to businesses and societies for mutual benefits. It is independent of the government which entails that their rules and regulations is not government mandated law though it does support and is in-line with certain government policies that mainly focuses on the social responsibilities of a corporation. Commerce, as the main factor influencing globalization, plays a major role in societies and economies anywhere in the world. UNGC requires participating businesses to submit a Communication in Progress (COP) report once a year, Continue reading

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